Jim Kramer says he keeps new money “on the margins” until the stock sale ends
CNBC Jim Cramer He said on Tuesday that he remains fairly cautious in the stock market until he sees concrete signs that weakness is coming to an end.
The sale will eventually fix itself. “mad money” said the host. “I think it’s worth waiting on the sidelines with fresh money until we figure out how things can turn out, or your favorite stock fades to such an extent that it becomes all too easy to ignore, like a brutal crash in micron after closing.”
Cramer said there are six major issues contributing to the weakness on Wall Street, including inflation, which appears to be more difficult than the US dollar Federal Reserve Initially expected higher natural gas prices and supply chain disruptions.
The other three, according to Kramer, are the coronavirus that is discouraging people from returning to the workforce, uncertainty about a proposed infrastructure bill in Congress and a shortage of semiconductors.
All three major US stock indices are firmly in the red for the month of September.
“At this point, it is only safe to buy things that are completely destroyed or that could be coil springs. … My charitable trust, we are only touching stocks that have lost 10% of their value in a very short period of time,” Kramer said. Buy today.” “We don’t sell. Why? Because we have a lot of liquidity, and we like it when the market goes down so we can run it.”
Although he believes the market will eventually turn around, Cramer said he realizes it’s a tough moment for some investors given the ongoing market strength since the March 2020 pandemic-induced decline.
“If you can’t stand the pain, it’s never too late to sell something, but please only on the bounce, as long as you’re smart enough to get back to a lower level,” he said.